2C1G ACE MANUFACTURING PLANS TO PRODUCE TWO PRODUCTS, PRODUCT C AND P...

200.

CSO: 2C1a

LOS: 2C1g

Ace Manufacturing plans to produce two products, Product C and Product F, during the

next year, with the following characteristics.

Product C

Product F

Selling price per unit

$10

$15

Variable cost per unit

$ 8

$10

Expected sales (units)

20,000

5,000

Total projected fixed costs for the company are $30,000. Assume that the product mix

would be the same at the breakeven point as at the expected level of sales of both

products. What is the projected number of units (rounded) of Product C to be sold at the

breakeven point?

a.

2,308 units.

b.

9,231 units.

c.

11,538 units.

d.

15,000 units.